RAK Gas has signed a production sharing agreement with Zanzibar.

The project is the African country's "first-ever exploration project", said RAK Gas co-chief executive Kamal Ataya, whose company signed the agreement to execute the scheme with the Zanzibar government as well as the Zanzibar Petroleum Development Company.

The company signed the rights to explore and develop the Pemba Zanzibar block, which spans 11,868 square kilometres. It didn't disclose the value of the deal.

RAK Gas, which processes and supplies gas to the northern emirates, also has licenses to operate in Somaliland, Malawi and Egypt. Zanzibar, famous for its tropical beaches, is a semi-autonomous region of the eastern African state of Tanzania, which depends largely on gas to meet its energy requirements. The country experiences a high rate of energy poverty, with an estimated 20 per cent of the population living off the grid.